BHP sees iron ore market robust in 2007

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Published: Feb 6, 2007 10:03 p.m. ET

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SYDNEY (MarketWatch) -- BHP Billiton Ltd.'s (BHP) expects a robust iron ore market for 2007, with the global miner trying to come closer to utilizing full production capacity by securing additional vessels at its Western Australian operations, BHP's carbon steels materials group president said Wednesday.

BHP's iron ore production of 97 million metric tons in the fiscal year to June 30, 2006, was 11% below output capacity at 109 million tons. But attempts to secure two extra ships per month had shown "good success," Chris Lynch said at an analysts presentation following the company's first half results, without specifying additional tonnages as a result of higher shipping volumes.

At its Western Australia operation, its expansion project Rapid Growth 3 remained on schedule for commissioning in the fourth quarter of 2007, with a planned fourth stage expansion also on course to deliver capacity growth to 152 million tons, pending board approval, Lynch added.

The board's decision for the fourth stage is due within the first half of 2007.

In its coking coal division, Lynch said he expected a more balanced market next year due to China's growing self-sufficiency and consumers "migrating down the quality scale."

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